Convergence of green total factor productivity in China’s service industry

With the rising global concern over environment and energy issues, there are many scholars incorporating them into total factor productivity (TFP) analytical framework. This paper aims to outline the dynamic change trend and convergence characteristics of green total factor productivity (GTFP) of 14 sub-sectors in China’s service industry. This is of great significance to the coordinated development and green transformation of sub-sectors of China’s service industry. This paper commences to gauge and decompose GTFP of China’s service industry by cutting-edge epsilon-based measure (EBM) generalizing slacks-based measure (SBM) and radial measure as well as Global Malmquist-Luenberger (GML) productivity index, and to examine the existence of convergence hypothesis in China’s service industry. The core conclusions are as follows: (1) the average annual growth rate of GTFP in China’s service industry is 1.00%, and there exists heterogeneity for GTFP in different sub-sectors; (2) there are phenomena of σ-convergence, absolute β-convergence, and conditional β-convergence in GTFP of China’s overall service industry, producer service industry, and consumer-oriented service industry. The main policy suggestions include: increasing investment in green technology innovation of the service industry, formulating more effective industrial development planning and energy policies, and optimizing energy structure and industry structure of the service industry.